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Sukanya Samriddhi Yojana: Benefits, Eligibility Criteria, How to Apply Online

Are you the parent of a girl child? And are you interested in securing her future financially by setting aside some money for her higher education and marriage? If your answer to both my questions is yes, then you should invest some money for your daughter in the Sukanya Samriddhi Yojana.

Now you might be wondering what’s exactly Sukanya Samriddhi Yojana (Daughter’s Prosperity Scheme). Or maybe you’ve heard about it on the radio, TV or through ads in newspapers and magazines. 

Regardless, I will be discussing the various benefits of the Sukanya Samriddhi Yojana or SSY and giving you all details about the scheme in my complete guide. If you’re the parents of a daughter, continue reading because it could help secure her future.

Understanding Sukanya Samriddhi Yojana

The Sukanya Samriddhi Yojana (SSY) was launched on January 22, 2015 by Prime Minister Narendra Modi as part of the ‘Beti Bachao, Beti Padhao’ (Save and educate your daughter) initiative. The move is part of the Indian government’s drive to prevent discrimination against female kids while helping their parents save money for her future.

The scheme is administered by the Indian government in collaboration with India Post and Public Sector Undertaking (PSU) banks as well as some private commercial banks. SSY savings accounts can be opened across India through any of these banks or post offices that provide financial services from India Post.

Sukanya Samriddhi Yojana Benefits, Eligibility Criteria, How to Apply Online

How to Open a Sukanya Samriddhi Account

To open a SSY account, you have to visit the nearest Post Office or PSU bank branch or that of any other commercial bank which offers such accounts.

Your daughter has to be less than 10 years old at the time of opening an account.

You can open a SSY account in the name of a maximum of two daughters per family.

The account validity is till your daughter attains the age of 18 years or gets married after that age. You can close the account within three months of the daughter attaining the age of 18 or marries.

However, an SSY account has to be closed if your daughter becomes a Non-Resident Indian (NRI) before the age of 18. The account can only be held in the name of girls who are resident Indian citizens.

Deposits Under Sukanya Samriddhi Yojana (SSY) Scheme

You can open a Sukanya Samriddhi Yojana account in the name of your daughter with a minimum of Rs.250 deposit. The account works like a Recurring Deposit. This means, you will have to deposit Rs.250 or a higher amount every month to the SSY account.

However, the Indian government has put an upper ceiling on the amount of money that parents can deposit in an SSY account.

At the time of writing this article during the end of 2021, parents could deposit a maximum of Rs.150,000 during the tenure of the account, which as I explain before, is till the girl attains the age of 18 years. You cannot deposit more than Rs.150,000 in an account over a period of years.

Guardianship of the Account

Usually, the mother or father of the girl child is the guardian of a Sukanya Samriddhi Yojana account. That’s because the girl would be minor and hence, not entitled to operate the account on her own till she attains the age of 18 years. 

At the same time, you can also designate another person such as a relative to be a guardian of the account. 

The money from the SSY account however can be withdrawn only by the girl child, when she attains adulthood at the age of 18 years. In case the girl child passes away, becomes an NRI or there’re other strong reasons, the legal guardian of the child can claim the funds deposited in the SSY account.

Documents You Need to Open Sukanya Samriddhi Yojana Account (KYC) Formalities

The SSY account requires complete Know Your Formalities for the parent. That means, the parent or guardian has to submit their Aadhar card as well as Permanent Account Number (PAN) details to open the SSY account in the name of their girl child.

However, for the girl child, you will require the Aadhar card, a copy of her school ID card, birth certificate and other documents to prove age and that she’s studying. You also have to submit passport size photos at the time of opening the SSY account for a girl child.

The requirements may vary according to the bank, but generally, these are the broader guidelines for the KYC formalities for opening a SSY Recurring Deposit Account.

Interest & Taxes on (Sukanya Samriddhi Yojana) SSY Accounts

An SSY Recurring Deposit account fetches an interest at 7.4 percent compounded per annum. This is much higher than the regular Recurring Deposit rates that’re offered by banks and India Post.

Part of the interest on the SSY account is borne by the Central government. This means, your girl child stands to gain a lot of money, if you save more money in her name for her marriage or higher education.

All deposits and interest are exempt from Income Tax under Section 10 of the Income Tax laws of India, according to various sources. This means, your daughter will not be liable to pay any taxes when she withdraws the money after the SSY account matures at her age of 18.

Depositing Money in Sukanya Samriddi Yojana Accounts

The government of India, through banks, is offering different ways to deposit money every month in the Sukanya Samriddi Yojana Recurring Deposit accounts.

  1. You can deposit the money by direct debit standing instructions to your main Savings Bank or Current account or Salary Account.
  2. It is also possible to deposit the money by check to a SSY Recurring Deposit account at the bank. However, this facility might not be available at some post offices.
  3. You can credit cash directly to a SSY Recurring Deposit account.

You can use any of these three ways to credit funds to your daughter’s SSY account. Generally, the first option of direct debit through standing instructions is the best since it would help avoid queues at banks to deposit the money. This facility isn’t available at post offices though.

Sukanya Samriddhi Yojana Overview

Scheme / Yojana Name Sukanya Samriddhi Yojana
Yojana Beneficiaries Any resident Indian girl child below 18 years
Page Category Sarkari Yojana
Scheme ObjectiveIndian government’s drive to prevent discrimination against female kids while helping their parents save money for her future.
Official WebsiteClick here
Interest Rate 7.4 percent compounded per annum

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In Conclusion

The SSY account is expected to help lower income and middle-income families to help save money for their girl child’s future needs such as higher education and marriage.

Several million accounts have been opened by parents under the SSY scheme after it was announced. The first week after the scheme was announced in 2015 saw over 1.5 million accounts being opened across India.

This shows that the SSY scheme has been well received by Indians and more and more parents are now actively investing money for the future of their girl child.

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